Crypto Exchange Coinbase and Marketing Agency Marden-Kane have agreed to give a $ 2.25 million settlement to resolve one, year-old class-action trial. The case began in June 2021, when Coinbase launched a Sweepstakes (Lucky Draw) campaign with the onset of Dogecoin Buying and Selling, with a $ 300,000 grand prize. However, a user claimed that the promotion was based on “misleading and misinformation”.
Significantly, the news of the settlement of this losuit has been received when Coinbase Hack Users are very concerned with the news of this. According to the information, the risk of leaking of data of platform users has increased after hack.
What was the user’s charge?
Coinbase user David Suski said in court that he bought Dogecoin as he felt that shopping was necessary to participate in the competition. Whereas in fact, no purchase was necessary to participate in Dogecoin Sweepstakes, and this was hidden in small and blurred fonts on the website. Suski said that if he had already had this information, he would not buy dog on coinbase as he was already holding a dog on Robinhood. Significantly, Suski demanded a compensation of $ 5 million in the case.
Case reached Supreme Court
The dispute went to the US Superb Court Dockt, where Coinbase demanded to send the case to Arbitration. But the Supreme Court dismissed this petition, which retained the decision of 9th Circuit Court Dockt of appeals and proceeded. The decision ensured that the class-action case would be heard in the open court.
Users will get compensation
After this settlement, all users who traded $ 100 or more in June 2021 and participated in the competition. This compensation will include transaction fees and “spreads” collected by Coinbase. According to court documents, Coinbase had earned up to $ 1.3 million only from early trading at that time.
Coinbase and Marden-Kane cleaning
Both Coinbase and Marden-Kane have denied any wrongdoing so far. He says that the language of “No Purchase Nessesteri” was clear in the advertisement and a “sensible customer” could understand it. However, critics say that this important information was deliberately visible so that more Cryptocurrency buying and selling Ho and the platform benefits.
Conclusion
This case of Coinbase highlights the importance of transparency and honest marketing in the crypto industry. In this era of rising crypto awareness, the legal and moral boundaries of the marketing strategy to woo users are also being fixed. This settlement of $ 2.25 million may not be a major setback for coinbase, but it is a warning for all crypto platforms that there is no more capital than customer confidence.
